Homeownership1. Neighborhood-Based Homeownership Housing: The City develops affordable housing through
neighborhood-based community development corporations (CDCs) and developers
who have formed partnerships with neighborhood organizations.

2. New Construction:The construction of new affordable housing
for sale to homebuyers is increasingly important in rebuilding neighborhoods
in the most blighted areas of Philadelphia. As part of the Neighborhood
Transformation Initiative, vacant lots are acquired and assembled into
buildable sites for new construction housing. In addition to providing
affordable housing, new housing construction at scale can rebuild housing
markets and increase value in communities affected by disinvestment
and abandonment. New construction can also provide residents with modern
amenities including off-street parking and larger lots at lower density.

Rental Housing1. Neighborhood-Based Rental Production:
In its role as the City of Philadelphias housing finance agency
and real estate acquisition/disposition agency, RDA has developed a
reliable process for delivering CDBG funds for rental housing production
by private, non-profit and CDC developers through a competitive RFP
approach.

The RDA has particular expertise in combining CDBG
development subsidy funding awarded through the local RFP process with
Low-Income Housing Tax Credits financing. RDA underwriting staff has
developed a close working relationship with counterparts at the Pennsylvania
Housing Finance Agency (PHFA), the state agency that administers tax-credit
financing allocated to Pennsylvania.

RDA and PHFA staff coordinate their respective reviews
of development financing proposals for Philadelphia ventures to ensure
that CDBG subsidy funding is used to make Philadelphia proposals as
competitive as possible for tax-credit financing. Because of this close
working relationship and the capability of many developers of Philadelphia
affordable-housing ventures, the City has succeeded in receiving substantial
awards of tax-credit financing in every funding cycle since 1993.

Financing for the rehabilitation and new construction
of rental projects is provided using CDBG and HOME funds in accordance
with the Rental Project Selection Criteria. Project financing for rental
ventures is usually made available in the form of a long-term, low-
or no-interest loan. Financing administered by OHCD through RDA usually
leverages PHFA PennHOMES funds and low-income housing tax credits, and
in some cases, foundation funding.

In order to promote transitional and permanent housing
for special-needs populations, projects recommended to receive financing
must allocate 20 percent of the developed units for special-needs housing.
Also, in order to ensure the most efficient use of funds, OHCD requires any project which does not achieve settlement within six months
to undergo a RDA staff review. Following RDA review, OHCD may decide
to withdraw project funding, extend its commitment or have a different
development entity undertake the construction to ensure project completion.

2. Public Housing Production:
The Citys housing agencies support the Philadelphia Housing Authority
(PHA) in its development efforts in a variety of ways, including the
acquisition of property through Act 94 and Urban Renewal condemnation
by the RDA and participation in planning efforts for PHA development
priorities by OHCD.

3. Development Financing/Homeless & Special-Needs
Housing:OHCD maintains its commitment
for the development of permanent housing for the following Philadelphia
residents: the homeless; persons with substance abuse; mentally ill
and mentally disabled persons; persons with AIDS and disabled persons.

OHCD provides development financing to projects selected
through a competitive process. An RFP was issued by RDA in January 2004
to provide development financing for projects serving special-needs
populations. Sponsors and/or developers were required to demonstrate
development capacity and capability to leverage city funds with state
and/or federal special-purpose funds and private funds. Priority was
given to those projects which in addition to leveraging other funding,
can provide needed supportive service resources, require additional
OHCD financing to address gaps which cannot be eliminated by other sources,
support other City revitalization efforts and/or are a continuation
of a multiphased project.

4. Development Financing/AIDS-Related Housing:The RDAs special-needs housing development
request for proposals issued in January 2004 included HIV/AIDS housing
development. Up to $800,000 in HOPWA funding will be available.

5. Housing Development Assistance:
OHCD supports rental developments which receive
other federal funding through the Housing Development Assistance budget.
In general, the program provides funding for site improvements and related
construction activities. For rental development with commitments of
HUD 202 (elderly) or HUD 811 (disabled) financing, the OHCD subsidy
is capped at $15,000 per unit, based upon a dollar-for-dollar match
of other funds, provided funds are available.